It is usually best to spread the money - have some of it in a fixed interest easy access account, some in longer term higher interest bonds, and some to "play" with on the stockmarket. Even with all the ups and downs the stockmarket usually hugely outdoes any other savings. Personally I keep a year's expenses in an ISA which is tied up but could be accessed in an emergency (with loss of some interest), some in rental property and the rest on the stockmarket, albeit in lower risk funds. This gives me a good return in general, I aim for between 5 and 10% overall. Of course it depends how much you have - getting 5% more on £2000 (£100 pa) doesn't really matter, compared to £500,000 (£25,000 pa) which can make a huge difference!